SBIR Mills are draining America's innovation fund
2 days ago
- #Government Funding
- #Innovation
- #SBIR
- The INNOVATE Act aims to reform the SBIR/STTR programs to expand participation and recognize merit through strategic breakthrough awards.
- A small group of 'multi-award winners' (MAWs) are blocking reforms as their business models depend on the status quo of receiving numerous SBIR/STTR awards annually.
- MAWs like Physical Sciences Inc. and Triton Systems have received hundreds of millions in SBIR/STTR funding, crowding out true innovators and sometimes partnering with foreign adversaries.
- Defenders of MAWs argue they deliver strong returns, but GAO data shows they perform poorly on key metrics like patents, private-sector sales, and diversity.
- The INNOVATE Act proposes reforms like caps on lifetime awards and strategic breakthrough awards to help technologies scale and cross the 'Valley of Death.'
- Critics claim reforms will 'kick out' experienced firms, but reliance on SBIR/STTR grants for decades indicates a flawed business model.
- Government funding should act as a catalyst, not a crutch, by broadening participation, incentivizing commercialization, and pairing taxpayer dollars with private capital.
- The stakes are high as China dominates critical technologies, and reform is needed to ensure SBIR/STTR fosters breakthrough innovations for defense, economy, and society.